20 February 2019
From 6th April 2019, the law regarding payslips will change and will mean that itemised payslips will now need to be given to all employees and workers.
Creating an itemised payslip
Itemised payslips will now make it much easier for HMRC to spot and prosecute businesses that pay below the national minimum wage, so it’s important for employers to get it right.
Payslips must include this information:
- Gross salary (i.e. the wages you pay before deductions).
- The amount deducted from pay, and why.
- The net amount that workers take home after deductions.
- The amount and method of any part-payment (i.e. if you pay a worker £1500 a month but they get £500 in cash and £1000 in BACS this will need to be detailed on the payslip).
- The number of hours where pay varies depending on the amount of time worked. So, if employees are paid based on the number of hours they work or they get different amounts for working certain hours, employers need to include these hours on their payslips.
Preparing your payroll in April
- The workers and employees in a beauty salon or barbershop business who don’t receive itemised payslips should be identified.
- Determine working hours and job functions, and how these relate to pay. Then it will need to be worked out how much money employers take from their pay and why.
- Be clear with deductions. Check if a worker or employee gets the same amount for different tasks, or if overtime is paid for different hours worked. Calculate how much is charged for uniforms or equipment. Record any pay docked for absence or lateness. And make sure any salary sacrifice for a non-cash benefit is included, such as accommodation or transport.
For more information on payslips and for legal support, contact the Membership Team on 01234 831965.